When Economists Refer to "The Invisible Hand," What Do They

question 280

Essay

When economists refer to "the invisible hand," what do they mean?

---

Definitions:

Price of Capital

The cost of using capital resources, such as equipment or buildings, often reflected in interest rates or rental prices.

Price of Labor

The wage rate or compensation given to workers for their labor, typically expressed per hour or year.

Isocost Line

A graphical representation in economics showing all combinations of inputs that have the same total cost.

Price of Capital

The cost of using financial assets for production, often reflected in interest rates or rents.